A public hearing was set for an ordinance that would increase short-term, unsecured borrowing by $350 million for water and sewer projects.<\/p>\n
After the introduction of Ordinance 52-26, Councilmember Rachel Kaduk had questions about the commercial paper proposal \u2013 did it include any funds for the Yacht Club, Festival Park, Bimini East, or the Utility Expansion Project.<\/p>\n
Financial Services Director Crystal Feast said during Wednesday\u2019s Cape Coral City Council meeting that the commercial paper obligation increase of $350 million \u2014 from $150 million to $500 million \u2014 is specifically related to a revenue sufficiency study presented to council in April, which included options for funding future projects for the utility system.<\/p>\n
\u201cAt the time we got a consensus to move forward with commercial paper,\u201d Feast said. \u201cThe $350 million increase is specific to water and sewer.\u201d<\/p>\n
She said the commercial paper would not fund the assessment portion of the water and sewer projects.<\/p>\n
Councilmember Jennifer Nelson-Lastra said commercial paper verse bonds is more cost effective because the city can draw on the commercial paper as they go.<\/p>\n
\u201cThis lets us do it little bit by little bit,\u201d she said.<\/p>\n
The public hearing is set for Wednesday, Sept. 16.<\/p>\n